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DETROIT - American Axle & Manufacturing Holdings, Inc. (NYSE:AXL) has raised its financial targets for fiscal year 2025 following strong second quarter results, the automotive supplier announced Friday.
The company now expects annual sales between $5.75 billion and $5.95 billion, up from its previous low-end estimate of $5.65 billion. AAM also increased its adjusted EBITDA forecast to between $695 million and $745 million, raising the lower end from $665 million previously.
The company similarly lifted its adjusted free cash flow projection to $175-$215 million from $165-$215 million, while maintaining capital spending at approximately 5% of sales.
The revised outlook is based on North American light vehicle production estimates of 14.6-15.1 million units and AAM’s production forecasts for key programs it supports. The company noted these projections exclude costs associated with its announced combination with Dowlais and reflect AAM on a standalone basis.
For the full year, AAM expects net income between $5-$15 million, interest expense of $170-$180 million, and income tax expense of $10-$40 million. Depreciation and amortization is projected at $460 million.
The company anticipates approximately $35 million in restructuring-related costs and $65 million in acquisition-related expenses tied to the Dowlais transaction.
AAM’s updated guidance assumes no changes to USMCA trade agreements and successful mitigation of most incremental tariff costs. The forecast also presumes no material changes to macroeconomic conditions, accounting standards, market demand, or the competitive environment.
The financial projections were disclosed during the company’s earnings presentation based on a press release statement.
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